LSEG Partners with Kraken to Bring Blockchain to Traditional Markets

The London Stock Exchange is joining forces with Payward, the parent company of cryptocurrency exchange Kraken, to bring blockchain technology to traditional markets. The partnership will enable tokenized versions of U.K. shares on a new platform called xStocks.

xStocks tokens will be backed one-for-one by the underlying shares and will allow for 24-hour trading with faster settlement times. This is part of the London Stock Exchange Group's plan to launch a new 24-hour trading venue, LSE 24, in 2027, pending regulatory approval.

The initiative aims to bring the speed and accessibility of cryptocurrency markets to traditional equity trading. For investors, this means they will be able to trade shares beyond regular market hours and settle transactions more quickly.

LSEG Chief Executive Julia Hoggett believes that tokenization could transform financial markets while maintaining trust and regulatory standards.